How to Recover a Debt from an Individual
How to Recover a Debt from an Individual
Do you have a debt owed by an individual? Have you loaned money to a family member or friend that has failed to repay you? In modern times, where money can be sent at the click of a button, more individuals are facing the challenge of being owed money.
The relaxed nature of how money can be transferred to another person has been the driving force for this increase. On top of the struggles that day-to-day finances bring, the owing of money is the last thing anyone wants to experience.
There are many situations where someone may need to know how to recover a debt from an individual, such as:
- Friend, family member or ex-partner personal loans.
- Sole traders that have not been paid by a customer for goods or services.
- Rent payments are unpaid by a current or previous tenant.
- Deposits or refunds not paid back to the individual.
- A loan to a start-up business that has not been repaid.
This is only a small selection of the many ways that money can be owed from an individual.
To put how series personal debt is into perspective, around 63% of UK adults have experienced this in one way or another. For the person that is unpaid, they may feel like they have little to no security as it could be their word against the debtors.
Our experts understand the levels of stress that this can cause and as such have produced this guide to help recover your money.
How to Recover Money from a Person – Top Tips
No matter the type of private debt scenario you find yourself in, this is always a challenge to deal with. Knowing how to effectively get the money paid back to you can be a task in itself.
A sensitive yet firm approach is needed, and following these tips will help on how to recover a debt from an individual.
Do not let your emotions get the better of you
Money transactions related to private individuals are based on trust, which is why these scenarios can be particularly disappointing. Remaining calm, despite the circumstances, is important to help you get your money back.
Failing to do this will provide the debtor with a reason to withhold payment for even longer. With this in mind, all communication with the debtor should be done so professionally.
Regardless of the relationship with the individual, acting in this manner will show you are serious about getting the money back.
Contact the debtor to chase for payment
It is not uncommon to chase an individual for payment if they have not produced this on time. Hesitancy can hinder the communication process, as many believe this could fracture the relationship.
This is a false perception, and the debtor can be chased in multiple ways, including phone calls, emails, and letters. You should note that any type of communication should be recorded for proof, should further action be taken.
Send a Letter Before Action (LBA) to the individual
If and when your chasing efforts have failed to make the debtor pay what is owed, you should send a Letter Before Action. This letter will display your intentions of taking legal action/court claim against the individual.
Doing this may seem excessive if the debtor is a relative or friend, however, it is known to be effective.
In some situations, court action can affect the credit score of the individual that owes the money. This, along with the threat of court proceedings, is usually enough to produce the payment.
The most effective LBA’s will have been created by a professional debt collector. For help sending yours, speak to one of our experts now.
How to recover a debt from an individual – Speak to professional
Following the above procedures provides you with a high chance of getting back what you are owed. In the event that no payment is forthcoming, authoritative action should be taken.
Using a trusted debt collection agency, such as Frontline Collections, is the beneficial solution to this scenario. Frontline Collections know how to recover a debt from an individual effectively whilst maximising results.
We lead the way for private debt recovery and can retrieve money from debtors in the UK and overseas.
As a result of our long history, we have developed an exponential amount of expertise and knowledge of the industry. This allows us to provide debt recovery and legal advice to our clients that are owed money by private individuals.
How to Recover a Debt from an Individual – Frequently Asked Questions
Can my debt be recovered if it is from a private individual?
Yes, the recovery of debt can be carried out regardless of who owes it. Frontline Collections have specific experience enforcing the collection of money on behalf of individuals.
My debtor has moved away and is ignoring me, what should I do?
If your debtor has absconded, this can make a stressful situation even worse. Our specialist debt collectors can conduct a tracing service meaning we can trace their whereabouts.
Should I use the small claims court or a debt collection agency?
Using a debt collection agency, as opposed to issuing legal proceedings, is by far the most effective way of getting your money back. We provide a low-cost fixed fee solution for recovering debt from individuals.
How successful are agencies at recovering an individual debt?
Frontline Collections produce an average private debt recovery success rate of 90% and above for our clients.
Can a debt collection agency collect money from someone abroad?
Our experts have the resources to recover debts in over 83 different countries. We have specialists worldwide that can enforce debt collection from every corner of the globe.